Starbucks Taps Google For Faster Wi-Fi At Outlets

The Wi-Fi speeds at your local Starbucks (SBUX) outlet will soon get faster, under an agreement unveiled Wednesday between the global coffeehouse chain and Google (GOOG).

Starbucks says it's selected Google to provide its next-generation Wi-Fi offering for customers. The two companies are also teaming to co-develop a more advanced Starbucks Digital Network that offers content to Starbucks clientele.

Starting in August, new U.S. Starbucks outlets will begin to receive up to 10 times faster network and Wi-Fi speeds. Starbucks will also convert more than 7,000 of its U.S. stores over the next 18 months to the upgraded store network and Wi-Fi experience. Financial terms weren't disclosed.

The pact with Google ends an arrangement that Starbucks had with AT&T (T) to provide Wi-Fi at its national outlets.

"We will be transitioning away from AT&T over the next 18 months," Starbucks spokeswoman Linda Mills told IBD, saying existing company coffee outlets will be gradually shifted from AT&T to Google Wi-Fi.

"Every day, our customers rely on the free Wi-Fi at Starbucks to study, work, connect with friends or just relax. We want to make sure that they can access the web effortlessly and quickly, no matter what they're doing, or what device they are using," Adam Brotman, chief digital officer of Starbucks, said in the company's press release. "Our goal is to continue to provide our customers with the best in-store experience possible, and we are excited to offer these kinds of unparalleled experiences at a broad scale."

Starbucks and Google didn't say much about the next-generation version of the Starbucks Digital Network. The current in-store network offers free content like movie trailers, assorted videos and other offerings to customers. Google didn't say if its pact with Starbucks would be used as a jumping-off point to develop more advanced networks with e-commerce and media applications. But the search leader seems to be leaving the door open to future possibilities.

"Google has always invested in projects that help the Internet grow stronger, including projects that make Internet access more affordable and more widely available. We hope that speedier Internet will make the time customers spend at Starbucks even more enjoyable and productive," Kevin Lo, general manager of Google Access, said in the release.

"Google will be an active partner of Starbucks Digital Network going forward," said Starbucks' Mills.

Starbucks and Google will work with telecom firm Level 3 Communications (LVLT) to boost Wi-Fi connectivity at Starbucks outlets. Level 3 will upgrade existing Wi-Fi devices and manage in-store connectivity at all U.S. outlets.

The Wi-Fi speeds at your local Starbucks (SBUX) outlet will soon get faster, under an agreement unveiled Wednesday between the global coffeehouse chain and Google (GOOG).

Starbucks says it's selected Google to provide its next-generation Wi-Fi offering for customers. The two companies are also teaming to co-develop a more advanced Starbucks Digital Network that offers content to Starbucks clientele.

Starting in August, new U.S. Starbucks outlets will begin to receive up to 10 times faster network and Wi-Fi speeds. Starbucks will also convert more than 7,000 of its U.S. stores over the next 18 months to the upgraded store network and Wi-Fi experience. Financial terms weren't disclosed.

The pact with Google ends an arrangement that Starbucks had with AT&T (T) to provide Wi-Fi at its national outlets.

"We will be transitioning away from AT&T over the next 18 months," Starbucks spokeswoman Linda Mills told IBD, saying existing company coffee outlets will be gradually shifted from AT&T to Google Wi-Fi.

"Every day, our customers rely on the free Wi-Fi at Starbucks to study, work, connect with friends or just relax. We want to make sure that they can access the web effortlessly and quickly, no matter what they're doing, or what device they are using," Adam Brotman, chief digital officer of Starbucks, said in the company's press release. "Our goal is to continue to provide our customers with the best in-store experience possible, and we are excited to offer these kinds of unparalleled experiences at a broad scale."

Starbucks and Google didn't say much about the next-generation version of the Starbucks Digital Network. The current in-store network offers free content like movie trailers, assorted videos and other offerings to customers. Google didn't say if its pact with Starbucks would be used as a jumping-off point to develop more advanced networks with e-commerce and media applications. But the search leader seems to be leaving the door open to future possibilities.

"Google has always invested in projects that help the Internet grow stronger, including projects that make Internet access more affordable and more widely available. We hope that speedier Internet will make the time customers spend at Starbucks even more enjoyable and productive," Kevin Lo, general manager of Google Access, said in the release.

"Google will be an active partner of Starbucks Digital Network going forward," said Starbucks' Mills.

Starbucks and Google will work with telecom firm Level 3 Communications (LVLT) to boost Wi-Fi connectivity at Starbucks outlets. Level 3 will upgrade existing Wi-Fi devices and manage in-store connectivity at all U.S. outlets.

See Also

Stock mutual fund managers Andrew Acheson and Paul Cloonan have been kicking it into a higher gear at Pioneer Fundamental Growth Fund. The 16.61% average annual return of their $2.4 billion fund ranked in the top 27% of its large-cap growth rivals tracked by Morningstar Inc. over the five years ...

The Big Cap 20 is showing itself to be a good representation of today's market leadership, as technology, health care and consumer stocks dominate the list. A glance of the IBD Smart NYSE + Nasdaq Tables shows chips, medical, apparel, retail and other technology sectors make up most of the top 10 ...

Samsung took the wraps off its new mobile payment system at Mobile World Congress in Barcelona, while eBay's (NASDAQ:EBAY) PayPal said it would acquire startup Paydiant, whose digital wallet technology is being used by major retailers. PayPal, which eBay plans to spin off, will reportedly pay about ...

Technology stocks are thriving as the Nasdaq composite closes in on 5,000 after a big February advance. Savvy investors know to focus on the very best companies. IBD's Screen Center runs a Tech Leaders screen. Today's Tech Leaders is on Internets. This article does a second sort focusing based on ...

2 In a 3-2 vote, the FCC OK'd new rules requiring Internet service providers to act as neutral gateways that can't charge for faster streams or reduce speeds to those who need less, regulating broadband like telecom under Title II of the '34 Communications Act. Comcast's (NASDAQ:CMCSA) David Cohen ...

02/27/2015 06:32 PM ET

More Technology Articles:

Chinese e-commerce giant JD.com (NASDAQ:JD) on Tuesday unexpectedly reported a fourth-quarter profit and better-than-expected revenue growth. But its morning breakout ended badly while shares of its larger rival hit a record low. JD.com, which came public last year, reported adjusted earnings per ...

The Geneva International Motor Show underway this week is dishing up more competition in high-end electric and plug-in hybrid cars for Tesla Motors (NASDAQ:TSLA). The car debuts come as Tesla stock faces pressure on several fronts and the specter of possible Apple (NASDAQ:AAPL) car looms down the ...

Amazon.com (NASDAQ:AMZN) and other infrastructure-as-a-service providers will put up with low profit margins as they aim to shift customers over the long term to more profitable cloud computing products, says Goldman Sachs in a report. The e-commerce leader is expected to break out revenue for ...

Wall Street analysts trying to predict the average selling price of the Apple Watch might be underestimating the impact of consumers buying extra wrist bands for the highly anticipated smartwatch. Piper Jaffray analyst Gene Munster predicts that the average selling price for the newest Apple ...

Select market data is provided by Interactive Data Corp. Real Time Services. Price and Volume data is delayed 20 minutes unless otherwise noted, is believed accurate but is not warranted or guaranteed by Interactive Data Corp. Real Time Services and is subject to Interactive Data Corp. Real Time Services terms. All times are Eastern United States. *Reflects real-time index prices.